Friday, January 3, 2014

Market Summary -- 3rd Jan 14

FTSE STI closed 3,131.47, down 43.18 points or -1.36% with a total volume of 3.30b and a total value of S$905M.  Total number of advance vs decline was 141 vs 298.  Of the 30 component index stocks, 1 unchanged and 29 in the red.  The top 5 loser component stocks were :-

1. JMH 400US$  -0.710
2. JSH 500US$  -0.520
3. Jardine C&C  -0.430
4. UOB  -0.320
5. SIA  -0.240

US markets started 2014 all in the red falling at least 0.80% despite upbeat economic data in jobless claims, better than expected EU PMI but below expectation China PMI.  Asian bourses started the day mostly in red tracking US overnight.  Nikkei still closed for holiday while SSE and HSI both fell 1.24% and 2.24% respectively.  STI in line with regional bourses fell 1.36% almost gave up all the gain for the past 9 days in thin value day.  29 of the 30 index stocks registered negative with none managed to close positive.

Lot of reasons were given for US markets falling at least 0.80%, namely US Fed finally started trimming its bond buying program this month (from US$85b to US$75b), a reality check that liquidity is finally tighter.  Some said it was profit taking after a remarkable run up since last month.  Whatever the reasons, best to just focus on fundamental and valuation, trying to be overly optimistic and pessimistic is never the way in the stock market.

STI fell 1.36% for the day due to the blue chips weighing down (fund managers still on holiday with nothing supporting it).  Even penny stocks also mostly suffered pull back.  This mainly due to traders taking profit as they punt them up for the past days.  The reality of US Fed finally tapering this month could be rock the sentiment too (even if it should not be), as when one claimed so, the word will spread making more feeling so and thus the domino effect.  Well the true fact is the one who started the negative sentiment now definitely is not the wiser of all and those who fall for it nothing more to say.  Earning season will commence soon, best is to focus on it and be careful of punting penny stocks.

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